1. Global Business Environments
MNI 3701
Revision Slides (Part Three)

2. Contents
Basic overview of Chapters 9 & 10 of the prescribed book - Global Management, Strategies and Structures.
9 – International Management and Leadership
10 – Global competitive and collaborative
strategies and structures

3. Chapter 9 - International Management and Leadership
Key concepts you should know:
Characteristics of a traditional mindset vs a global mindset.
The difference between international; multi- domestic; global; transnational and multinational.
The difference between international; global and worldwide.

4. Chapter 9 (contd.)
The key issues and environmental forces that have a direct impact on MNEs’ opportunities and threats.
The definition of Competitive Intelligence;
Competitive Intelligence analysis framework;
Risks in the international environment;
Groups of Competing Factors;
Character traits of international managers;
Issues that managers face in diversified MNEs.
How do managers cope with these issues ?

5. Chapter 9 (contd.)
Personal characteristics and competencies of a leader with a global mindset.
What is emotional intelligence ?
International leadership in developing countries;
What are the characteristics of the global economy ?

6. Chapter 9 (contd.)
Reasons why leaders should develop a global mindset;
How is leadership influenced by cultural differences ?
Charismatic; transformational and transactional leadership.
Why is a global mindset important ?
Personal characteristics and competencies of a leader with a traditional mindset;

7. 10 – Global competitive and collaborative strategies and structures
How is competitive advantage achieved in an international environment ? (location economies; economies of scale and scope; experience effects; core competencies; leveraging subsidiary skills; government incentives).
Goals of an MNE
What are the sources of global competitive advantage?

8. Chapter 10 (contd.)
National competitive advantage – factor endowments; demand conditions; related and supporting industries; firm strategy, structure and rivalry; government and chance events.
International competitive strategies –
Strategic orientation of global firms (ethnocentric, polycentric, regiocentric and geocentric);
Pressures for cost reduction and local responsiveness;

9. Chapter 10 (contd.)
When to use, characteristics, advantages, disadvantages, key organising principles, types of industries the following strategies:
1. International strategy
2. Multidomestic or multilocal strategy
3. Global strategy
4. Transnational strategy

10. Chapter 10 (contd.) Foreign market entry:
Which markets; timing of entry; scale; mode of entry.
Advantages, disadvantages and key success factors of:
1- exporting,
2 - turnkey projects,
3 – licensing,
4 - franchising,
5 - contract manufacturing,

11. Chapter 10 (contd.) 6 - service sector outsourcing,
7 - strategic alliances,
8 - management contracts,
9 - joint ventures,
10 – wholly owned subsidiary
Guidelines for entry modes
Guidelines for strategic alliances

12. Goodluck with your studies!!
Chapter 10 (contd.)
Developing an international strategic management framework (8 steps);
Relationship between international strategies and structure.
Chapters 11 – 13 will be covered in the next set of slides.
Goodluck with your studies!!